Coles and Woolworths Battle Consumer Watchdog Over Alleged Misleading Pricing Campaigns
Source: DairyNews.today
Supermarket giants Coles and Woolworths are set to challenge the Australian Competition and Consumer Commission (ACCC) in court over allegations that they misled customers with deceptive "price drop" promotions. Both companies deny the accusations and assert that the legal cases brought against them are unfounded.
The ACCC claims that Coles and Woolworths engaged in misleading conduct by promoting "Down Down" and "Prices Dropped" campaigns. The watchdog alleges that both supermarkets inflated the prices of hundreds of products before introducing the discounts, which, despite being lower than the inflated prices, were still higher than the original pre-spike prices.
Supermarkets Deny the Allegations
Coles and Woolworths argue that the price increases were driven by suppliers' rising costs rather than deliberate attempts to deceive customers. Woolworths' lawyer, Cameron Moore SC, stated that the supermarket had not initiated the temporary price spikes, dismissing the ACCC's case as "misconceived." Similarly, Coles' lawyer, John Sheahan KC, argued that the case was more complex than the ACCC's allegations and could have industry-wide implications.
Both companies are required to submit a written response to the ACCC's allegations by November 29, with a follow-up case management hearing scheduled for December.
Scrutiny Amid Cost-of-Living Crisis
The pricing strategies of Coles and Woolworths, which dominate 67% of the Australian supermarket sector, have come under increased scrutiny during the current cost-of-living crisis. An ACCC report in September highlighted rising consumer concerns over soaring prices, the lack of competition, and diminishing trust in promotions and discount schemes. The report followed the ACCC's legal action, which has further fueled public debate.
In response to growing concerns over pricing practices, the federal government has announced plans to revise unit pricing regulations to combat "shrinkflation" — a practice where products reduce in size but prices remain the same or increase.
Supermarkets Deny the Allegations
Coles and Woolworths argue that the price increases were driven by suppliers' rising costs rather than deliberate attempts to deceive customers. Woolworths' lawyer, Cameron Moore SC, stated that the supermarket had not initiated the temporary price spikes, dismissing the ACCC's case as "misconceived." Similarly, Coles' lawyer, John Sheahan KC, argued that the case was more complex than the ACCC's allegations and could have industry-wide implications.
Both companies are required to submit a written response to the ACCC's allegations by November 29, with a follow-up case management hearing scheduled for December.
Scrutiny Amid Cost-of-Living Crisis
The pricing strategies of Coles and Woolworths, which dominate 67% of the Australian supermarket sector, have come under increased scrutiny during the current cost-of-living crisis. An ACCC report in September highlighted rising consumer concerns over soaring prices, the lack of competition, and diminishing trust in promotions and discount schemes. The report followed the ACCC's legal action, which has further fueled public debate.
In response to growing concerns over pricing practices, the federal government has announced plans to revise unit pricing regulations to combat "shrinkflation" — a practice where products reduce in size but prices remain the same or increase.
